the stock market rallies ahead of the fed....but is the party coming to a close. in today's cover story.... how best buy is making a comeback on wall street, and main street. plus.... nickel and dime tips on how to build your personal wealth...even if you have a hard time saving. and... the surprising shops that are "fueling" holiday spending. let's get down to business--! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday- december 17th. i'm angela miles. in today's first look: the big fed wind down. today marks the beginning of a two day meeting at the federal reserve. it ends tomorrow with a

news conference by outgoing fed chair ben bernanke.wall street is on edge over whether he will disclose a wind down of bond buying stimulus program. ahead of the meeting stocks went wild monday. the dow pushed up by 130--the nasdaq 29 and s&p by 12. gold edge higher by 5 dollars.and oil by 71 cents. a report says a vote to approve janet yellen as the next fed chair could happen thursday. today, president obama meets with top tech leaders to talk about the healthcare.gov website and nsa spying. also a snow snarl is expected for commuters from the midwest to the east coast ...take care on the roads. glenn schultz of performance trust joins us now. glenn, will it be a terrifying tuesday. everybody's so concerned about this fed meeting. what is the bond market telling you? >>the bond market is telling me that they've handicapped the odds of tapering at around 60- 70%. if you compare this to the economists predictions that's

about 34% of economists polled said there's going to be a taper. but you also have to look at the risk markets as well. equity markets rallied throughout the day and into the close. they were up. so what that tells me is that the risk markets are on the fed's side. if the fed begins to taper, the risk markets are not going to take that as a negative. they're going to take that as a positive. the economy is gaining momentum and stronger than most people think. >>and here's something curious glenn, foreign investors are picking up the pace in which they are buying our stocks and bonds. should americans be doing the same thing? >>you're right. actually it has been 2 straight months where we've seen net foreign investment of long term securities actually increasing. what you are seeing here is foreign investors are looking at the ten year treasury note outside of 2 and ½% as a great entry point to get into the rates markets. so i think that on the u.s. side, investors should start looking at this from the standpoint of a stronger u.s. economy means a

stronger market in terms of the risk market. it also means that interest rates are going to go up so you're going to have to be a little bit defensive on that side of the trade. >>thank you glenn and have a great day. >>thank you. the budget is almost a done deal on capitol hill... votes counted by various news outlets show the senate is likely to end debate and soon cast votes on the bi-partison deal conjured up by republican congressman paul ryan and senate democrat patty murray. the budget deal saves $85 billion over the next 10 years and restores $63 billion in sequester spending cuts. it includes benefit reductions of federal workers and military personnel who retire early. chuck coppola steps in now with an update on detroit's bankruptcy.and pension problem. angie -- detroit's city workers fearing cuts to their pensions have the opportunity to appeal the motor city's massive bankruptcy. a judge says union groups that want to appeal the

bankrutpcy ruling for the cash strapped city can file immediately. the judge will then decide whether to fast track the case. the people of detroit also await more details regarding the city's art collection. an auction house is currently reviewing the value of 28 hundred pieces and is expected to release a figure this week. the emergency city manager wants to sell the works to pay creditors and fund public pensions. worker productivity in the u-s is at its highest level in four years. productivity increased at an annual rate of 3% during the third quarter acccording to newly released data from the labor department. the numbers are indicative of stronger economic growth. and because labor costs fell in the third quarter, inflation will likely remain low. the numbers from the labor department were revised up -- productivity was initially thought to have increased 1.9%. the pressure is on. this week marks the busiest week of the year for the u-s postal service. yesterday alone, the us-ps processed 600 million pieces of

mail. the pressure is also on for consumers to shop. 779 brands including amazon and zappos are offering free shipping for online shoppers all day tomorrow for "free shipping day." it guarantees delivery by christmas eve. on one the largest days for christmas shopping, hundreds of amazon workers go on strike in germany. upset for months over pay and working conditions for its members, the verdi union called for the protest. amazon says there's no impact yet on services despite the walk out by close to 700 workers. germany is amazon's second biggest market, behind only the u-s. best buy stock is up nearly 240-percent this year!!!!! it's one of the top three in the s-and-p 500!but a year ago, a lot of people were preparing to say good-bye to best buy.our cover story looks at how the electronics retailer bounced back. best buy, the electronics

retailer is enjoying a turnaround. just a year ago, it suffered from shoppers who came in to look but often went home and ordered more cheaply from amazon. now, it's trying to convert traffic into sales by matching prices on local and selected online competitors. "we know we have to a better job of converting traffic into buyers and we think we're doing a great job with that." "i think it's important but i also think its important to have customer service so you can understand what you're trying to buy." under a new ceo, hubert joly, a turnaround specialist, best buy cut 400-positions--many of them mid-level managers, cut operating costs and reconfigured its stores. and borrowing from department store strategy, concentrated square footage for apple and samsung products---creating "a store within a store" staffed by apple and samsung specialists. "if that's their routine and they're going to bring in people, that's good. that's a plus." "it's given them access to the

product, access to our experts and we've had good feedback from our customers with that." best buy stock is up nearly 240% for the year. it's gross margins of 26 and a half percent in august beat expectations.still, analysts say intercepting browers with price- matching isn't enough to sustain best buy's rebound to this magnitude. "i don't think it's enough to price match because amazon and walmart and others have other countermeasures they could take so if they really wanted to get more aggressive on pricing, they could." in texas, best buy sponsored a video game showdown at a-t-and-t stadium. with competitors dez bryant and emmitt smith. with sony and microsoft releasing upgraded video game consoles, the event sought to underscore a different type of showrooming--- engaging customers at brick and morter locations. best buy says its operating and staffing cutbacks in the past year saved $390-million dollars. morningstar's r.j. hottovy thinks the stock is overvalued, though. best buy closed up three-percent at 41-73 the gas station convenience store down the street could get busier this year going into the final days before christmas.jeff lenard-- of the national association of convenience stores joins us by skype this morning with the latest stats.good morning jeff-- what will last minute shoppers be buying? >>they're buying time. and what we're seeing at convenience

stores iswe surveyed consumers and about one-third said that they'd be shopping for food and drinks on their way to the mall or somewhere else. another one- third said they would be buying more presents whether it's gift cards or something like that and not going to the malls. >>why is it so popular to shop at your local gas station? >>there are people that have always done that. back in the old days like with mad men what people would do is buy cartons of cigarettes. and it has evolved today to some of the gift items that you see in other stores---impulse items that are either stocking stuffers or gift cards or something that you no longer have to worry about going down the street and getting somewhere else. >>any chance the mega millions jackpot is driving traffic? >>lottery tickets are a big stocking stuffer and we've seen people over the years put a dollar or two lottery ticket in a stocking. it's possible someone will be waking up on christmas pulling out a 600 million dollar stocking stuffer but tomorrow we are going to see massive traffic activity in stores because of not just the holiday shopping, not just traditional shopping, but that

big jackpot which could possibly hit a record. >>thank you jeff. >>thank you. a scathing report is out about the utter failure of banks to help struggling homeowners -- despite promises to do so under the government's mortgage modification program.bloomberg news reports--bank of america stands out in particular because it got the most -- 15-thousand -- complaints, just in 20-10. b- o-a also sent the highest percentage of customers in the special program into foreclosure. one former b-of-a employee was quoted as saying "everybody knew that we weren't helping people" bonuses will be up this year for bankers in london...bloomberg news has learned-- managing directors at banks in london are predicitng a 44% bump in raises. back in february the european union brokered a deal to outlaw bonuses that double banker pay.the law was challenged and the eu's highest court has yet to make a final decision. in a $5.4 billion deal a-i-g sheds it aircraft-leasing business, international lease finance corporation. the insurance giant is selling the unit to netherlands-based aercap holdings in a cash and stock deal. aig bought i-l-f-c in 19-90 for $1.3 billion and has been trying to find a buyer for it since the 20-08 financial collapse. in a different deal on the table. avago technologies plans to buy chipmaker lsi corp for

$6.6 billion dollars. avago wants to get into the semiconductor business especially with the increase of demand for cloud computing for data centers. lsi stock surged 38% on the heals of the deal monday. avago shares bounced 9% in sign wall street likes this hook up. some famous names in hollywood are back together. harvey and bob weinstein are re-kindling a partnership with miramax. the power producers ended their relationship with the film studio in 2005 to create "the weinstein company."the deal means the weinsteins can produce sequels or tv shows from miramax's collection of famous titles that includes films such as pulp fiction and chicago. production will begin as early as next year. in a new horse meat scandal-- french authorities have arrested 21 people. the arrests were made after police raided drug production facilities on suspicions that horses ended up on consumers' plates. horse meat is eaten in france but when not meant for human consumption the meat could pose health risks. the animals used in the

production of medicines are generally sold after three years and microchipped. buyers have to commit not to slaughter them. the fda is pushing makers of antibacterial soaps to come clean. under new rules- manufactuers have to "prove" that antibacterial products are more effective than plain soap and water at killing germs and are safe for long term use. the fda says there is currently no evidence that these products are more effective than regular soap and the ingredient -- triclosan -- is believed to pose health risks. the new rule is available for public comment for 180 days. the latest stats on car insurance unveil something you long suspected. your car insurance cost bumps up on average 38% after you file a claim. if you file a second claim-- insurance quotes.com found it drives up the cost almost twice as much, or on average, above 14 hundred dollars. "auto insurers have to set rates based on the types of claims that they predict they are going to have in an area. so if they see an area of the country where rates and claims are rising they are going to set

rates to adjust for that level of risk." that was laura adams of insurance quotes.com the steepest premium hikes after filing a claim with the company is in massachusettes at 67%. followed by california at 62% and new jersey at 59%. maryland is the lowest at 20%. general motors is ready to make a major investment in its car and truck factories. according to reports-- gm will ill plunk down $1.3 billion to spruce up plants at 5 factories in the states of michigan, ohio, and indiana. 1,000 jobs will be created or saved. the automaker wants to producer higher quality pickup trucks as well as new fuel efficient engines and transmissions. still to come: it's getting *personal . the touchy ways tech will progress in the year ahead.

plus....whip your finances into shape with simple ways to grow your wealth. and, jackpot! why today's mega millions drawing could make history. first business continues right after this!

the stakes are high in today's mega millions drawing!!!! ...but the odds are especially low. cnn reports the odds of winning today's jackpot are one in 259 million. the prize could hit a record high by tonight's drawing. some are even anticipating the jackpot could come close to a billion dollars if there is no winner by christmas. winning the jackpot would be wonderful but if you invest your money wisely, you can create your own million dollar jackpot. joining us on set this this morning dr. deena marie carr author of the carr guide to personal wealth. welcome to our show. >>thank you for having me.

>>i always like to think of this as i don't need that lottery ticket, i'm gonna figure this out on my own. and you actually can do this starting with holiday shopping. this is a time when people are doing big spending, but what could they do to actually help their net worth? >>this is a time when many people do fall behind that 8 ball and create the cycles that keep them struggling. there are some small things you can really do. one is to pay with cash as opposed to paying with credit cards. it's a fact that you spend more. you are more detached from it. really having an idea of what you are going to shop for and looking for creative ways to connect with people and share without having it be tied to a physical gift that you had to purchase. >>getting to that 1 million. say someone is watching and they think i want to get to that jackpot, how soon do you have to start? how much do you have to put away and of course it all depends on your age correct? >>absolutely it does. generally everyone tells you to start while you're young because you can put a little bit aside. so if you have 20-30 years you

could save like 1800 dollars- 2000 a month easy, so we say, right? and you can get to a million dollars just by living the life. but many times people look at that as i only make 50 thousand dollars a year and i'm taking care of kids. how can i do that? well, having a small business on the side or doing a little part-time work. there are a lot of home based businesses now and opportunities to make money with passive income working for you. i really encourage people to look down that path. >>to someone who may be only able to put away 5-10 dollars per week and that's what i would do---break it down per week instead of having this big grandiose number at the end of month. >>exactly. and i don't think you have to get to a million dollars now. i believe that starting with a pattern---with a habit creates opportunity. and one opportunity creates another opportunity. once you start the habit of investing and buying things---who know? you might find the next facebook or

google or stock or real estate. >>exactly. i think of thos people who did get in on the last 6 years, maybe they were just putting away a thousand dollars a year. they're doing very nicely with that investment right now. >>exactly. the compound interest working for you. >>great to have you on the show. come back soon. thank you. >>thank you so much. coming up...a spicy stock. that's later on in chart talk. plus tuning into tech. eye catching ways the tech industry is moving ahead...bill moller explains after the break. i'm going to pass chemistry, and i'll take it from there. i'm going to do what makes me happy. i'm going to work hard. be independent. live large. make the most of every opportunity. i knew i wanted to go to college. but figuring out how to pay for it? i didn't have a clue. the u.s. department of education has over $100 billion. and that's a lot of money. to help students pay for college.

and the free application? you mean the fafsa. i did it online. it was easy. i'm never giving up on my goals. i will make a difference. i'm going to find out how to pay for college. i'm going to college.gov.

technology is advancing at a faster clip than you think - and i don't mean each new iphone release. shama kabani is a best selling author, analyst and futurist on technology and social media. okay, we'll dim the lights...what do you see in technology's immediate future? >>let me gaze into my crystal ball for that one. so a couple of things---here are my 3 big trends that i'm seeing---the first is personalization. a huge trend. that means that no 2 people are gonna have the same experience whether it comes to search or shopping. so if

you and i were to search for the same thing online we would see completely different results based on our history, based on location. the same thing with shopping---your trends, your profileyou could pay a different price for bananas than i would pay based on our history. >>that's sort of the opposite of mass marketing where there's a billboard that looks at 50 thousand people and maybe 15 will respond to it. >>it's like minority report. you know when tom cruise goes into that gap and there's that hologram that follows him and tells him exactly what he's looking for. >>you also talk about for 2014 and technology, curation and aggregation. >>yes, so that's my 2nd big prediction for 2014. we've got a lot of information and so how do we deal with it all? you see sites like pinterest for example, really rising. what does pinterest do? it's not a new service, not a new product. it really just helps you organize the images that are out there. so as we kind of

become immersed in content and information, things that help us organize that information and make sense of it, give context and relevancy to it will definitely be on the rise. >>it's like a firehose that internet. and you have to make sense of it somehow. >>yeah, you've got to be able to filter that. >>alright, and you see more and more video coming. >>that's right. you've got my third trend.video is definitely on the rise and it's device agnostic. you can watch it on the television, it's very traditional. but then also your laptop, tablet and smartphone and there's more and more online video. there's a study out there that says 64% of people will finish watching up to a 30 minute commercial video clip versus 24% who will finish reading an article. so what that tells you about literacy, i don't know but i can tell you it says a lot about online video and you'll see a rise of that in 2014. >>that's a trend you can't deny. shama kabani, thanks so much. >>my pleasure. thank you bill, still to come...how the average household spice rack could add good measure to your portfolio. chart talk is next.

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matt shapiro, president of mws capital joins us now to add some spice to our lives. good morning matt. >>good morning angie. >>mccormick spices is one of your holdings in your portfolio. this stock has not exactly soared this year but will it have a breakout moment? >>i'm hoping. it raised its dividend angie. these kind of companies, money managery companies but have a lot of breadth and a real product--- anytime you're in the supermarket and you reach for the shelves---mccormick really controls this and sort of has a very protected---i'm not going to say a monopolybut a very strong business. and remember a couple years ago when warren buffett bought heinz you were like man, why didn't i buy that? well, here's your opportunity to by one of these stocks in a hot category in the food segment. >>i'm glad that you mentioned mr. buffett because some people may be wishing that they would have bought exxon a lot earlier. one of his big picks. >>yeah, who knew that just a couple months ago this stock was scraping down in the 80's? not even advanced much for the

year but it's that almost 3% dividend that's really making the difference in these blue chip companies. of course, oil rebounded and of course the blessing of warren buffett does magic. >>it never hurts. so with both of these would you add to positions here? >>i would. because for 2014, the main thing i want investors out there to look for are blue chip companies with above average dividend yields. those are gonna do well even if interest rates rise and of course we expect economic growth to still be very good. >>matt thanks as always for coming on our show. >>you're welcome. that does it for today. coming up tomorrow... 5 star etf-s. a morning star analyst will be here with strategy tips for investing in exchange traded funds. sometimes refered to as baskets of stocks. we hope you will join us. from all of us at first business, have a great tuesday.

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